Credit disability insurance

By Frank N. Darras

DarrasLaw


Credit disability insurance is a type of insurance that pays all or part of a debt on a monthly basis, should the policy owner become disabled or unable to perform their normal work in order to bring in a paycheck. Because unpredictable things can happen in life at unexpected times, this type of insurance helps your clients plan and reduce financial risk. Death or disability are life events that most people will experience at some point, often rather unexpectedly. Should one of these events occur, your clients' loved ones will have plenty to deal with without taking on the additional burden of financial payments on a loan. Credit life and disability insurance is designed specifically to take over these payments on a loan in the event of death or disability.

Financial planners or financial services companies can be of great help in helping clients look to the future and deal with any possible events in their lives that could drastically affect income or savings. The average person never wants to project about their health or even death; however, it is important to be prepared for these events. Being prepared for such events secures the financial stability and future of clients' loved ones. This will also provide your clients with peace of mind in the event of a disability; to help them know that their family is protected from further financial risk.

Credit life and disability insurance provides your client and their family with financial security and peace of mind, should a disability occur. With this insurance, should a client become disabled or die, the benefit will pay the remainder of their loan or take on monthly loan payments for them. Credit life and disability insurance will pay the actual balance owed on a loan if they should die prior to the loan being fully repaid. Alternatively, credit disability insurance will make regular payments on the loan, should they become disabled or so sick that they are incapable of working.

Credit life and disability insurance, as well as credit disability insurance, protect not only your client and their loved ones, but the lender as well. The lender is insured against losing money that was borrowed from them in the event your client is unable to repay the loan fully. The other major benefit is that your client and their family are also covered from going into serious financial debt, possibly losing their home or spending savings in order to repay a loan due to a serious illness, disability or death.

*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.